2 ms·
Inflation is a measure of the cost of living. It's not got loads to do with large-scale, institutional investments.
by philipallstar 5mo ago
Inflation is a measure of the cost of living. It's not got loads to do with large-scale, institutional investments.
- 9question1 5mo agoThat depends. Inflation is a measure of the cost of living in terms of currency. It can be high either if goods and services required for living become scarce, or if currency supply increases. Currency supply increasing does affect asset prices.
- philipallstar 5mo agoYes, but they're not directly correlated. Of course events can affect them both! Going to war would both increase the cost of living and (some) asset prices would go way up. But that doesn't mean they should be measured together like that.
- JumpCrisscross 5mo ago> Inflation is a measure of the cost of living The faster your cash loses value, the stronger your incentive to trade it for something else. That something else can be financial assets. > It's not got loads to do with large-scale, institutional investments For investors, particularly retail investors, the consumer price index is most relevant. But for whatever it's worth, producer prices are up over 16% in April (7% excluding "foods, energy, and trade services," which jumped over 50% annualized) [1]. To be clear, I'm floating a hypothesis here. I have seen no evidence linking inflation to demand for these companies' shares. (If anything, it should be the inverse.) [1] https://www.bls.gov/news.release/ppi.nr0.htm https://www.bls.gov/news.release/ppi.nr0.htm
- thrawa8387336 5mo agoInflation then is already higher. Cost of living is driven mostly by rent